Gold bugs love bad news, and civil war in Libya, Africa's third-largest oil producer, couldn't have come at a better time. The pickup in the global economy and specter of central bank rate hikes helped knock the yellow metal off its lofty pedestal early in the year. Gold futures traded on the Comex division of the New York Mercantile Exchange (CME) lost more than a hundred bucks an ounce in January, and the precious metal looked like it was going into a full-blown correction.

As we said back when gold prices were on the way down, what a difference a month makes -- and now the same holds true on the way back up. Uprisings in Tunisia, Egypt and Libya -- and the potential for unrest in Bahrain, Algeria and (gulp) Saudi Arabia -- have pushed the price of gold back within striking distance of nominal all-time highs.

With oil bouncing around near $100 a barrel in New York trading and the Dow Jones Industrial Average ($INDU) off more than 350 points in just three days, it appears that the flight to safety in gold is back on.

Comex gold has rallied about 6% in February so far, closing at more than $1,415 an ounce Thursday. That's the highest gold prices have been in seven weeks. Tack on another $15 to $16 an ounce -- or a bit more than a 1% gain -- and gold will be back at the all-time record levels set back in early December (not adjusted for inflation, that is). See the chart below.



Gold prices were essentially unchanged Thursday, putting a run on the record on hold, but it may be just a matter of time if market sentiment is any indicator. Recall that sentiment is a contrarian indicator: When market participants are bearish, the next move in prices tends to be bullish (the idea being that all the sellers have sold).

It turns out that sentiment among professional gold traders looking to time the market is pretty dour -- and they appear to be sitting on lots of cash, according to the Hulbert Gold Newsletter Sentiment Index. Traders recommend allocating just about 45% of a portfolio to gold at these levels, according the the index. That means more than 50% should be sitting in cash, waiting to pounce.

That suggests that a lot of buying power is still sitting on the sidelines of this most recent gold rush.


Increase your money and finance knowledge from home

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Understanding Stock Market Indexes

What does it mean when people say "the market is up 2%"?

View Course »

Add a Comment

*0 / 3000 Character Maximum

89 Comments

Filter by:
Rai Shanker

Rai Shanker holds a fame in the sports world today. He has coached hockey to hundreds of boys in the Mohali Sports Complex of Punjab. Many of his students have qualified for the Indian Hockey Team. Rai Shanker held a fascination for this sport long before he grew up. He practiced hockey on the hockey stick of his father Mr. Suresh Shanker, who is also a renowned hockey player of yesteryears.

http://smifscapitalmarkets.wordpress.com/
http://www.smifscap.com/products.html
http://smifscapital.jalbum.net/
http://identi.ca/smifscapitalmarkets
http://smifscapitalmarkets.blog.co.uk/
http://smifscapitalmarkets.edublogs.org/
http://smifscapitalmarkets.buzznet.com/user/
http://www.ourstory.com//smifscapitalmarkets

October 14 2011 at 6:41 AM Report abuse rate up rate down Reply
Manisha Pahuja

Get eye catching men’s shirts from Angelino, the house of extensive range of men’s dress shirts. We offer wide range in colour from simple white and grey to marigold, turquoise and lavender. Most of our shirts are embroidered and beautified with an intricate design. Angelino men’s shirts are made up of 100% cotton for everyday Comfort. These men‘s dress shirts are easy to wash and require no ironing. With the Kashmir finish, unwrinkled stuff and tailored look these men’s shirts will be your pick


Mens dress shirts

http://www.angelino.us/Angelino_Shirts-5-1.html

August 23 2011 at 5:16 AM Report abuse rate up rate down Reply
Dereck

Major Fraud Alert


The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section: http://www.federalreserve.gov/boarddocs/press/bcreg/2004/20040726/attachment.pdf

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

The Federal Government has already been forced to discontinue supplying the Financing States use to pay their debts, Persons in Government Offices may want to begin to take their jobs more seriously, these are different times from 10 Years ago and you will not be accepted civil servants here just because you say you are here to do the right thing.

May 29 2011 at 1:07 AM Report abuse rate up rate down Reply
Compoundy

Hey, Dan

Good thing I found your update.
http://moneywatch.bnet.com/investing/blog/investment-insights/gold-1500-buy-sell-how-about-ignore/191/?tag=col1;blog-river

May 03 2011 at 7:44 PM Report abuse rate up rate down Reply
1 reply to Compoundy's comment
Compoundy

Good to see you back.

May 03 2011 at 7:51 PM Report abuse rate up rate down Reply
ronsjigslures123

It is not against the law to hord any metals these days, way back when Rosavelt was president he made a law that said you could not hord gold and silver over so much, years have gone buy and a President of the USA turned over that Law, so the American public can hord as much as they want in safty deposit boxes or other valts. Its even on the sold on the market these days, if you place a check in your bank for $10,000.00 or over the bank has to send a copy to the IRS any amount under that does not have to be recorded. So if you sell your hord some day sell under 10 grand lots at a time that way no one will even know you got paid for your investment. OK its call ed earned income and you might have to report some of it to the IRS but no one knows the real cash you got. My guess at one date in time the goverment will change this reporting method once people figure out all the extra cash they can make on hording silver and some gold, but for now there is nothing in the works for that and might not be for many years. Hord away watch the price go up and make your own retirement.

February 25 2011 at 9:54 PM Report abuse rate up rate down Reply
1 reply to ronsjigslures123's comment
Compoundy

http://moneywatch.bnet.com/investing/blog/investment-insights/gold-1500-buy-sell-how-about-ignore/191/?tag=col1;blog-river

May 03 2011 at 7:46 PM Report abuse rate up rate down Reply
ronsjigslures123

Buy silver in all forms put it away, when the day comes you want to sell them its simple you hand the buyer one of those silver one oz. coins you paid 40 bucks for ( if buying in 2011 ) and they will hand you anywhere from 80 to 150 bucks back for for that same coin you paid 40 bucks for. Times that if you horded 4000 or 10,000 coins and do the math, a heck of a pay back. Simple as that, no bank fees, seller fee,s, no fee,s at all no middle person to take some money out of your earnings. Be your own bank pay yourself, get a great retirement.

February 25 2011 at 9:41 PM Report abuse rate up rate down Reply
ronsjigslures123

I have a friend that got a Law suit settlement a few years ago and i told him of this system, he and his wife bought 75 grand worth of silver coins, bars and placed them in a few safty deposit box,s, they bought thm from the dealer i have been buying from for over 25 years at 10 bucks a one oz. coin,s and 9 bucks a oz. in bars, at todays EACH of those coins sells for around 35 bucks each and the bars at 33 bucks each. They made to date 90 times the RETURN on there 75 grand than if they would have bought 10 year cd,s, or bonds, or even left in in a interest bearing savings account. They are very happy people. When silver hits 75 and 150 bucks a oz. they will be VERYYYYYYYY happy people.

February 25 2011 at 9:35 PM Report abuse rate up rate down Reply
ronsjigslures123

If your a small working investor that want,s a TRUE 3/4 of a million bucks in cash at retirement then read this and think about it. The stock people hate guys like me, because they don,t make any money of us. Silver in coin or bar form will be the best investment you will ever make, simple start buying silver now even at 40 to 43 bucks each for Silver egals or bars,or 90% silver coins. Rent a safty deposit box and each month place a certain amout in that box, when it fills up rent another. If you have and extra 20 grand don,t buy a CD, Bond, or any other investment certificate..buy it all in silver and place it in the box. Silver will reach 75 to 150 bucks for each one of those coins you have saved within that 10 year CD time to mature, treat your silver as a 10 year investment, don,t touch it. In that 10 years that 20 grand will pay you back 40 or more grand at 75 to 150 bucks a oz. coin. when you cash them in you get your 20 grand back PLUS 20 grand in cash thats 40 grand. That 20 grand profit is the is a low ball figure it will be higher. Silver will reach 80 to 150 bucks a oz. coin in that 10 year span. If you put enough away and it will not cost you much to do that little at a time you could end up with 1/2 to 3/4 million in cash after 15 years. There is NO CD,Bond, or any other saving investment out there that will even pay you back a potion of that kind of return in 15 years, plus you pay taxes on those CD,s and you have to pay if you use any of the money before maturaty. when you own your own silver you can cash in when ever you want with no one taking any money out of your profits. Silver will become the most sought after metal in the world because of its industrial use and it can not be reclamed as easy as other metals, so the world will need a constant new supply of the metal for most all electronic cars, batterys, the most reflective surfaces,medicans,hospital stuff ( because silver does not hold germs at all ) most cell phone key pads will have silver in them, and many other uses, down to that mirrow on your bathroom wall has a silver backing for high reflecting, tons of silver are used for that right now just on car head lights and mirrows of all kinds. Keep your silver the same way you would keep a 10 to 15 year CD and get paid 2 to 3 times your investment when you cash in.

February 25 2011 at 9:21 PM Report abuse rate up rate down Reply
klclt

like all experts, they go with the wind, if oil prices go up, tey say buy, if oil goes down buy, its all bs. only ones making money are the specualtors who r selling u a load of horse manure. they make money whether u gain or lose.

February 25 2011 at 2:18 PM Report abuse +3 rate up rate down Reply
klclt

when a repuke tells u something, know he is lying throug his teeth.tax cuts create jobs. they sure do, overseas.visit china, your job is already over there. chinese are happy to do your job for 10 bucks a day, no vacation, no health ins.no pension plan. yep, tax breaks for the top 2%, it wont help a single middle class american.

February 25 2011 at 2:16 PM Report abuse rate up rate down Reply
2 replies to klclt's comment
rmhbiz4u

better than a dicocrap

February 25 2011 at 3:08 PM Report abuse rate up rate down Reply
Tom

You watch a lot of television , don't you sonny. Now give mom her computer back

February 25 2011 at 4:23 PM Report abuse rate up rate down Reply